The Welsh Assembly cash will be handed to Montgomeryshire Wildlife Trust to manage the project.

It is hoped the money will help secure the future of the endangered pearl-bordered fritillary butterfly in Powys and restore its habitat.

Initially the money was due to go to Powys council.

But the authority shelved plans to bring in a specialist because it was trying to slash its budget by £2.5m including a £1m reduction in education expenditure.

Council bosses wanted to employ an officer to lead a £100,000 project to save the butterfly.

But members of the council's powerful board said they couldn't afford the £20,000 needed to pay the officer.

To get round the problem the council decided to transfer the money to the Montgomeryshire Wildlife Trust.

A report by Powys economic and regeneration community directorate says: "It appears that the Assembly are happy with such an arrangement and will transfer the grant offer to the MWT."

The scheme is aimed at encouraging the butterfly to thrive at nine sites in the county - including three quarries.

Other money has been pumped into the scheme including £30,000 from the Countryside Council for Wales and £5,400 from various wild-life trusts.

The pearl-bordered fritillary is a "priority species" for preservation in the UK because changes in woodland management in recent years have led to its decline.

It can be distinguished by two silver "pearls" on the underside of the back wing. The pearl fritillary is only found in 10 other areas in Wales. During the last 50 years the butterflies have declined in numbers by 90pc.